Question

All of the following statements regarding the career agency distribution system are correct EXCEPT:

A. The managerial form of career agency system uses company employees as the agency managers.
B. Personal producing general agents (PPGAs) are commonly hired to manage career agencies.
C. There are two types, the general agency system and the managerial system.
D. It uses agents who primarily, if not exclusively, represent one insurer.

Answer 1

The career agency distribution system uses agents who primarily, if not exclusively, represent one insurer.

Step-by-step explanation:

The correct statement regarding the career agency distribution system is D. It uses agents who primarily, if not exclusively, represent one insurer. The career agency distribution system is a structure in which agents are hired to represent a specific insurer and sell their products. These agents may work exclusively for one insurer or primarily represent one insurer while also selling products from other insurers. This system is different from the other options mentioned, which describe the different types of agency systems within the career agency distribution system.